(NVDD) Direxion Daily DA Bear 1X - Ratings and Ratios

The Direxion Daily NVDA Bear 1X Shares ETF is designed to deliver the opposite daily return of NVIDIA Corporation (NVDA), making it a tool for investors betting against the tech giants stock performance. By investing at least 80% of its net assets in financial instruments such as swap agreements and options, the fund achieves its inverse exposure.

As a non-diversified ETF, its performance is heavily reliant on the movements of NVDA, categorizing it under Trading--Inverse Equity. This characteristic makes it particularly sensitive to the daily fluctuations of NVIDIAs stock, which can be volatile given the companys significant presence in the rapidly evolving tech industry.

Analyzing the ETFs technical indicators, we observe that the last price is $5.52, significantly below its short-term and long-term moving averages (SMA20: $6.31, SMA50: $6.79, SMA200: $6.73), indicating a potential oversold condition or a strong downtrend in the recent past. The Average True Range (ATR) of $0.36, representing a 6.43% daily volatility, suggests that the ETF is experiencing considerable daily price swings. The 52-week high and low ($10.31 and $5.47, respectively) further emphasize the ETFs volatility and its recent proximity to its 52-week low.

Fundamentally, the ETF has $37.28 million in Assets Under Management (AUM), which, while not exceptionally large, is sufficient to provide liquidity for investors looking to take a short position on NVDA. The relatively modest AUM, however, may impact the ETFs ability to maintain its inverse exposure effectively, especially if NVDA experiences significant price movements.

Forecasting the ETFs future performance involves analyzing both the technical and fundamental data. Given NVDAs historical volatility and the ETFs design to inversely track NVDA, a significant rise in NVDAs stock price could lead to a decline in NVDDs value. Conversely, if NVDAs stock price drops, NVDD is likely to increase. The current technical indicators suggest that NVDD might be near a support level around its 52-week low. If NVDA experiences a downturn, NVDD could potentially rise. However, the ETFs inverse nature means that any increase in NVDAs stock will negatively impact NVDD. Therefore, investors should closely monitor NVDAs price movements and adjust their strategies accordingly.

To make an informed investment decision, its crucial to keep a close eye on NVDAs price action and broader market trends, as they directly impact NVDDs performance. The high volatility of NVDA and, by extension, NVDD, necessitates a cautious and well-timed investment approach.